No Signal Of A Top Just Yet
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After a strong move up yesterday we saw the market take a bit of a breather with so far just a shallow retracement off of yesterday's high. Furthermore, that retracement has so far held over our upper support/pivot level not giving us any initial signal that we may have put in even a local top. So overall there is not too much to add to the previous analysis and we will continue to watch our support/pivot level as we move into the end of the week.
The move into yesterday's high satisfied the internal subwave structure that we needed to see to give us a potential top in the red wave 4. We also tested the upper trend channel line and so far have need see a sustained break of that level.
Today we moved into the upper end of the support/pivot zone which comes in at the 5937-5912 zone on the SPX. This zone represents the ideal support zone for the yellow wave iv. So should we see a break of that zone followed by a break under the 5827 level this would be the initial signal that we have topped in the red wave 4.
Holding that 5937-5912 zone on the other hand and moving to a new higher high would give us a five-wave move off of the lows potentially moving us into the completion zone for the wave (c) of b under that yellow count.
So while not too much has changed a lot is lying on that support/pivot zone and whether we hold or break this zone will likely be the information that we need to determine the path that the market is heading as we move into the end of the month and the early part of February.
